Memorandum

City of Lawrence

City Manager’s Office

To:	David Corliss, City Manager
CC:	Diane Stoddard, Toni Wheeler, Casey Toomay, Brandon McGuire, Angela Navarro
FROM:	Gary Cooper, Risk Manager
DATE:	May 5, 2015
RE:	5/18/15 to 5/18/16 RENEWAL Public Officials and Employment Practices Liability Policy

Background

The City maintains a $500,000 liability limit policy including a $75,000 deductible with AIG/National Union Fire Insurance Company and utilizes the Hays Companies of Kansas City as our broker. 

Renewal Process

The City solicited quotes from 15 carriers for our Public Officials and EPL coverage.  In the 2015 renewal process, the City received only one quote and it is from our current carrier, AIG.  All the other carriers declined to quote, as of the date of this memo.

The expiring premium for the 5/18/14 to 5/18/15 policy was $31,655.00.  The 5/18/15 to 5/18/16 policy renewal premium is $63,318.00, a 100% increase.

The increase is due to claims development on the Public Officials and EPL policy stemming from a claim filed on our 2011 to 2012 policy. 

The City has been with AIG/ National Union Fire for four continuous policy periods.

Recommended Action

Staff recommends renewing coverage with AIG/National Union Fire for the Public Officials and Employment Practices Liability policy at the $63,318 premium number for the 2015 to 2016 policy period.